CBDT signs three unilateral APAs

Q.  CBDT has signed three unilateral APAs on 4th Jan 2016. What is an APA?
- Published on 09 Jan 17

a. Advance Pricing Agreements
b. Absolute Pricing Agreements
c. Advance Price Agreement
d. None of the above

ANSWER: Advance Pricing Agreements
 
CBDT signs three unilateral APAsCBDT started 2017 on a good note with 3 unilateral Advance Pricing Agreements, taking the tally of APAs of the country to 120.

The three APAs signed on Jan 4, 2017 related to the engineering goods and shipping sectors of the economy. The international transactions covered in these agreements include intra-group services and support services, an official release said.

Of these 120 APAs, 7 were bilateral and 114 unilateral. A total of 56 APAs (4 bilateral and 52 unilateral) have been entered into in the current financial year till date.

APAs: Know More
  • The APA Scheme was introduced in the Income-Tax Act in 2012 and the “rollback” provisions were introduced in 2014.
  • The scheme aims to provide certainty to taxpayers in the domain of transfer pricing by specifying the methods of pricing and setting the prices of international transactions in advance.
  • Since its inception, the APA scheme has evinced a lot of interest from taxpayers and that has resulted in more than 700 applications (both unilateral and bilateral) being filed in just four years.
  • The progress of the APA Scheme strengthens the Government’s resolve of fostering a non-adversarial tax regime.
  • The Indian APA programme has been appreciated nationally and internationally.
  • It is known for being able to address complex transfer pricing issues in a fair and transparent manner.
  • An APA is usually signed between taxpayer and central tax authority of the country (in case of India CBDT) for appropriating transfer pricing methodology.
  • It is used to determine the value of assets and taxes on intra-group overseas transactions.

Post your comment / Share knowledge


Enter the code shown above:
 
(Note: If you cannot read the numbers in the above image, reload the page to generate a new one.)